USQRisk, the international managing general agent specializing in alternative risk transfer and unique risk solutions, announces the retirement of its UK CEO, David Hall. Hall has led USQRisk’s UK operations since 2021 and has played an instrumental role in the company’s growth and current success. Hall will remain as CEO until his retirement at the end of 2024.

“USQRisk is successful largely due to the tireless dedication and peerless expertise that David has brought to his leadership of the UK arm of USQRisk, and we wish him well as he moves into a well-earned retirement,” said Anibal Moreno, CEO of USQRisk. “I’m privileged to have had the opportunity to work with David and build USQRisk. I’ve personally seen David’s creative thinking and leadership, and while USQRisk will sorely miss his wisdom and tenacity, we wish him well in his retirement.”

Hall departs USQRisk with over three decades of insurance industry experience that include senior leadership roles with QBE, Aviva, Zurich and Allianz. Known throughout the insurance industry for his understanding of how the business is experienced from the outside in by brokers and customers, Hall is also recognized for ensuring his operations always bring a strong alignment between the service required and the service provided to the benefit of all.

“I’ve dedicated my career to understanding the complex world of insurance and have enjoyed the opportunity to not only work with the best in the business but to make a difference in how many of us tailor and transfer risk to make the uninsurable, insurable,” said Hall. “USQRisk has proven to be a fantastic environment where I can share a lifetime of expertise, and work with a team who truly understands the needs and complexities related to tailored risk solutions. I will cherish the fond memories I have from my time in insurance as I turn the page and move into retirement.”

Starting on January 1, 2025, USQRisk UK will continue its business operations led by its current senior executives, UK Chief Underwriting Officer, Jonathan Richardson, and Chief Operating Officer Anthony Harrington-Jones.

About USQRisk 

USQRisk focuses on customized risk management solutions to help clients manage volatility and overcome the shortcomings of traditional risk transfer solutions. Leveraging the company’s combined 250+ years of underwriting and risk management expertise in senior roles at major insurers and brokers like Allianz, Zurich, Chubb, Aon and Marsh, USQRisk provides nimble solutions to meet the needs of real-world problems. For more information visit https://www.usqrisk.com/

AAU, a division of USG Insurance Services, Inc., is pleased to announce the hire of Brenda Kent, Producer/Broker, to their Personal Lines Team. Kent brings a wealth of knowledge and expertise from her impressive 26 year career in the insurance industry. Her experience in underwriting, client service, and leadership has demonstrated her ability to manage high-value accounts, navigate regulatory complexities, and lead teams to success. Her impressive tenure at Southern Insurance Underwriters, Inc., saw her managing a $12 million book of business across multiple states and specializing in surplus lines, agribusiness, and personal property insurance. Her proactive approach in handling Department of Insurance complaints and audits underscores her commitment to compliance and dedication to maintaining high-quality service standards. Kent's unmatched expertise, leadership, and dedication to fostering exceptional service align perfectly with AAU's mission to deliver innovative and customer-focused insurance solutions. AAU is excited to have her on board as they continue to expand and elevate their offerings. This move is the most recent change that AAU has implemented in its plan to expand operations nationwide and continue to provide innovative solutions for the risk management industry. About AAU Allied American Underwriters (AAU) is a program manager that offers programs for commercial lines to USG retail agents and other distribution channels i.e.: wholesale and direct. There are six divisions: Workers Compensation, Environmental, Programs, Specialty, Personal Lines, and Commercial Surety. AAU is a division of USG Insurance Services, Inc.  

Insurance agents play a crucial role in educating their clients about maintaining valid car insurance policies and avoiding common pitfalls that could lead to legal and financial troubles. One such issue, particularly prevalent among young drivers, is the practice known as “fronting.”

Misrepresenting driver details to save on premiums might seem like a harmless strategy, but it comes with severe consequences for drivers and insurers alike. Let’s dive deeper into what fronting entails, the penalties involved, and other factors that can inadvertently invalidate a car insurance policy.

What Is “Fronting” in Car Insurance?

Fronting occurs when a young or inexperienced driver is listed as a named driver on a car insurance policy, even though they are the primary user of the vehicle. This misrepresentation is typically done to reduce premium costs, as younger drivers often face higher rates due to their increased risk profile. However, insurance premiums are calculated based on the main driver’s details, and falsely declaring this information constitutes fraud. For insurance agents, it’s critical to convey to clients that such practices invalidate their policies and leave them exposed to significant liabilities.

The Legal and Financial Ramifications of Fronting

The penalties for fronting can be severe. Drivers caught engaging in this practice may face unlimited fines, a court appearance, and even a driving ban. In some cases, vehicles involved in fronting schemes may be confiscated and destroyed. Beyond these immediate penalties, the long-term implications can be equally damaging. A fraud conviction may lead to higher insurance premiums in the future or difficulties securing coverage altogether. These consequences underline the importance of accurate disclosures when applying for car insurance. Katriona Cunningham, underwriting fraud lead at Aviva, emphasizes that fronting is not merely a technical violation but a serious issue. She explains that it not only constitutes insurance fraud but also places young drivers at significant risk by leaving them without adequate coverage. This highlights the role of insurers and agents in educating clients about the ramifications of fraudulent behavior.

Fronting Among Young Drivers: A Growing Concern

Recent research by Aviva reveals the alarming prevalence of fronting among young drivers. According to a survey of 2,000 drivers aged 17 to 25, one in six admitted to being part of a fronted policy. Shockingly, 35% of respondents believed that lying on an insurance application is a victimless crime, and nearly half were unaware that such actions could result in a driving ban. Additionally, over half did not realize their vehicle could be towed by police if found to be uninsured due to an invalid policy. These findings highlight a significant gap in awareness among young drivers, underscoring the need for insurance agents to proactively address this issue. By emphasizing the importance of honesty in policy applications, agents can help clients avoid the pitfalls of invalidated insurance.

Other Common Ways Policies Are Invalidated

Fronting is just one of many ways a car insurance policy can be invalidated. Another common issue arises when drivers fail to disclose after-market modifications. Additions such as tow bars, roof bars, or roof racks may seem minor but can increase the risk profile of a vehicle. If these modifications are not reported to the insurer, the policy may be rendered void. This can leave drivers responsible for covering the full cost of damages in the event of an accident. Additionally, the rise of “ghost brokers” presents another risk to unsuspecting drivers. These unlicensed entities sell fake insurance policies, often through social media platforms, leaving policyholders uninsured. For insurance agents, directing clients to registered providers listed on the Association of British Insurers (ABI) or the British Insurance Brokers' Association (BIBA) websites is a simple yet effective way to combat this issue.

The Role of Insurance Agents in Preventing Fronting

Insurance agents are uniquely positioned to mitigate the risks associated with fronting and other forms of policy invalidation. By fostering transparency and educating clients on the importance of accurate information, agents can help maintain the integrity of their clients’ coverage. For young drivers, this education is particularly crucial, as they are often unaware of the long-term consequences of fraudulent practices. Moreover, agents can guide clients toward trusted providers and ensure they understand the importance of reporting all relevant details, including vehicle modifications. These proactive measures not only protect clients from potential legal and financial fallout but also uphold the credibility of the insurance industry.

Conclusion

Fronting and other insurance pitfalls pose significant risks to both drivers and insurers. For insurance agents, understanding these issues and effectively communicating their implications is essential. By emphasizing the importance of honesty in policy applications and educating clients on the consequences of fraud, agents play a vital role in fostering a more transparent and secure insurance landscape.

Liberty Mutual, California's fourth-largest home insurer, has announced plans to withdraw from the state's condominium and rental insurance markets by 2026. This move marks a significant shift in the state's insurance landscape as California grapples with an evolving market and increasing risks.

Exit Timeline and Coverage Impact

The insurer will cease offering new condo and rental policies under the Liberty Mutual brand starting in 2025, with existing customers losing coverage beginning in 2026. According to filings with the California Department of Insurance, the company currently provides policies for nearly 67,500 condo owners and approximately 102,200 rental properties under its Liberty Mutual and Safeco brands. Liberty Mutual has already stopped writing new condo and rental policies under the Liberty Mutual brand since December 2023. Despite this exit, the company stated it plans to maintain its presence in California, continuing to offer homeowners insurance and other core Safeco products.

A Broader Trend in California's Insurance Market

Liberty Mutual's decision comes amid growing challenges for insurers in California, including heightened risks from natural disasters and market volatility. While other major insurers have scaled back their operations in the state, complete exits from specific lines have been less common. In 2023, Farmers Direct Property and Casualty Insurance Co., a subsidiary of California's second-largest insurer, withdrew from the state. However, last week, Farmers announced its return to writing new condo and renters policies, citing improvements in California’s insurance market.

Additional Changes to Liberty Mutual Offerings

Beyond condo and rental insurance, Liberty Mutual plans to discontinue new watercraft policies in 2025 and stop offering motorcycle and specialty vehicle insurance in 2026. Auto insurance for drivers not meeting "good driver" criteria will also be phased out by 2026. The company cited financial underperformance in these lines as a key factor in the decision. In August, Liberty Mutual further announced plans to discontinue fire dwelling insurance for 17,000 customers due to outdated technology, a move the company says is unrelated to the broader insurance crisis in California.

Support for Impacted Customers

Liberty Mutual has assured that all current policies will remain active until at least January 2026, and its agents will assist affected customers in finding alternative coverage. The company emphasized its commitment to California and expressed optimism about ongoing reforms aimed at stabilizing the insurance market. “We remain committed to California, to our agent partners and to our mutual customers, and will continue to provide our core Safeco products in the state," a spokesperson stated. "We are encouraged by progress on the Department’s Sustainable Insurance Strategy and our investment plans reflect this."

Conclusion

As Liberty Mutual exits key insurance lines in California, the move underscores the pressures facing insurers in a state marked by rising risks and regulatory challenges. The impact on condo and rental policyholders will likely spark further discussions about the sustainability and accessibility of insurance in California.

The Centers for Medicare and Medicaid Services (CMS) has proposed new regulations requiring insurance agents and brokers to provide more detailed information to beneficiaries about Medicare Advantage plans. This initiative, referred to as "Informed Enrollment," seeks to ensure that Medicare beneficiaries fully understand the practical limitations of switching plans before making enrollment decisions.

Current Rules vs. Practical Realities

Under existing Medicare rules, beneficiaries have several opportunities to switch plans. Each year during the open enrollment period, from October 15 to December 7, beneficiaries can change their Medicare Advantage plans or move between Medicare Advantage and original Medicare. However, while these options are legally permitted, practical challenges often make these transitions more difficult than they appear. One major issue lies in the guaranteed-issue protections for Medigap policies—private insurance plans that cover out-of-pocket expenses not included in original Medicare. During a beneficiary's initial enrollment period, insurers are required to offer Medigap policies to all applicants without considering their medical history or pre-existing conditions. However, after this initial period, these protections are largely unavailable in most states.

Medigap Access After Initial Enrollment

After the initial enrollment period, insurers in many states can deny Medigap coverage or charge higher premiums based on an applicant’s health history. Only four states—Connecticut, Massachusetts, New York, and Maine—offer continuous or recurring guaranteed-issue protections. Other states provide limited protections under specific circumstances, such as changes in employer-provided retiree health benefits or during a trial period for Medicare Advantage plans. This lack of guaranteed access to Medigap policies creates financial risks for beneficiaries considering a switch from Medicare Advantage to original Medicare. Without a Medigap policy, beneficiaries may face significant out-of-pocket expenses, including the 20% coinsurance required for most Part B services.

The CMS Proposal: Emphasizing Transparency

The proposed CMS regulations would require agents and brokers to clearly explain these limitations to beneficiaries enrolling in Medicare Advantage plans for the first time. This includes informing beneficiaries about their one-time guaranteed-issue rights under federal law when enrolling in original Medicare. By highlighting these practical challenges upfront, CMS aims to ensure beneficiaries make more informed decisions about their healthcare coverage.

Implications for Beneficiaries

The proposal underscores the importance of understanding not only the legal rights surrounding Medicare enrollment but also the practical implications. While Medicare Advantage plans may appeal to beneficiaries for their lower initial costs and additional benefits, the inability to secure a Medigap policy later could result in significant financial burdens for those who wish to switch to original Medicare.

What Comes Next?

As CMS considers public feedback on the proposed regulations, beneficiaries and advocates alike are watching closely. If implemented, these changes could reshape how insurance agents approach Medicare Advantage plan enrollment and help beneficiaries better navigate their healthcare options. This initiative reflects CMS’s ongoing efforts to enhance consumer protections and ensure that Medicare beneficiaries have the information they need to make decisions that align with their long-term health and financial well-being.

As healthcare costs continue to rise, employers in the U.S. are navigating a challenging landscape of increasing expenses, evolving employee expectations, and the need to remain competitive in attracting and retaining talent. Insights from Aon’s 2025 U.S. Health Survey shed light on how organizations of all sizes are addressing these pressures.

Healthcare Costs on the Rise

Employers are bracing for a 9.2% average increase in healthcare costs for 2025, up from 8% in 2024. While larger employers anticipate a slightly lower increase of 8.3%, small businesses face steeper challenges with an average increase of 10.3%. Adjustments in plan designs are projected to moderate these increases to 7.3% overall, though smaller companies still bear a heavier burden compared to their larger counterparts.

Strategies to Address Rising Costs

To manage escalating costs, four out of five employers plan to increase employee contributions to health insurance premiums, with an average hike of 5.9%. Interestingly, small businesses are limiting these increases more than mid-sized firms, possibly to remain competitive in attracting talent. Beyond raising contributions, employers are deploying a range of cost-containment measures:

• Pharmacy strategies, particularly targeting costly diabetes and obesity management drugs like GLP-1s, are being implemented by 32.4% of employers. These include requiring prior authorization, step therapy, and limiting refill quantities.
• Plan design changes, such as higher deductibles and co-insurance amounts, are another widespread approach, affecting employees’ out-of-pocket costs.
• Vendor strategies focus on consolidating services and negotiating better terms.
• Member support and wellbeing programs aim to improve employee health outcomes while managing costs effectively.

Well-being Takes Center Stage

Wellbeing strategies are gaining prominence as employers recognize their dual role in improving employee health and enhancing organizational performance. From expanding employee assistance programs (EAPs) to introducing financial wellbeing initiatives, these measures are particularly prevalent among larger organizations with the resources to implement them. Mental health, in particular, has emerged as a key focus area, driven by increasing awareness and demand from younger workforce segments. Employers are responding by expanding emotional support programs, even as provider shortages push costs higher.

The Complexities of Smaller Employers

Small businesses, often lacking the resources of their larger counterparts, face unique challenges. While 25% of small employers are making no changes to their plans — more than double the overall number — those that do act are taking targeted steps to mitigate employee costs. This cautious approach underscores the delicate balance they must maintain between cost control and employee retention.

Crafting Benefits for the Future

Employers are not passive observers in the face of rising costs. By embracing innovative strategies — from using data to refine plan designs to promoting high-quality, cost-effective care — organizations are tailoring their benefits to reflect their values and meet employee needs. Wellbeing programs, in particular, represent a shift from being viewed solely as health initiatives to becoming critical components of business strategy. The road ahead for U.S. benefits is undeniably challenging, but it also offers opportunities for employers to innovate and lead. Through strategic planning and a focus on holistic employee support, companies can navigate this complex terrain while ensuring their workforce receives meaningful and sustainable benefits.

The U.S. commercial property insurance sector is showing signs of stabilization after years of consistent rate increases, according to a new report from the Insurance Information Institute (Triple-I). The updated analysis highlights that, for the first time since 2017, commercial property insurance rates decreased, with rates shifting from a 3.4% increase in Q1 2024 to a 0.94% decrease in Q2 2024, based on AON’s latest market data. Despite ongoing challenges such as inflation and climate-related risks, the report emphasizes strong underwriting performance and improved investment returns as pivotal for sustaining profitability in the sector. “Increasing climate and catastrophe risk, particularly secondary perils, drive losses,” said Dale Porfilio, Chief Insurance Officer at Triple-I.

Climate Risks and Catastrophe Losses

The 2024 Atlantic hurricane season added complexity to the market, with insured losses from tropical cyclones reaching an estimated $51 billion. Hurricanes Milton and Helene alone accounted for 80% of these losses, at approximately $25 billion and $16 billion, respectively. However, total insured losses for 2024 slightly decreased compared to the previous three hurricane seasons. Reinsurance capacity remains sufficient, but the market’s competitiveness in 2025 will be crucial, given the sustained frequency of catastrophic events.

Challenges of Undervaluation

The report also underscores a concerning trend of undervaluation in commercial property coverage. A study by Kroll revealed that 90% of buildings appraised in 2020-2021 were underinsured, with 68% undervalued by 25% or more. This issue, combined with a downturn in commercial rents and the maturation of over $1 trillion in real estate loans in 2025, could add volatility to the market. “This vulnerability could ignite a shift in property insurance dynamics when claims exceed policy coverage,” said Porfilio. “Insurers must innovate and transform underwriting practices to address these evolving risks effectively.”

Industry Outlook

As insurers and policyholders navigate these challenges, the report predicts shifts in underwriting practices, policy structures, and relationships between insurers and commercial clients. The findings emphasize the need for comprehensive coverage options to mitigate the increasing complexity of risks in the commercial property market. For more insights, visit the Insurance Information Institute’s resources, which provide data-driven analysis to empower consumers and industry stakeholders.

A groundbreaking analysis by ZestyAI reveals a critical issue in homeowners' insurance coverage: millions of properties across the United States may be underinsured due to unreported or inadequately covered secondary structures. Leveraging artificial intelligence and aerial imagery, ZestyAI analyzed one million residential properties nationwide and found that 45% include multiple structures such as detached garages, sheds, barns, or accessory dwelling units (ADUs). Many of these structures are either overlooked or improperly insured, posing a significant challenge for both homeowners and insurers.

Key Findings

• Structure Prevalence:
  • 31% of homes have one additional structure.
  • 11% have two additional structures.
  • 4% have four or more secondary structures.
• Regional Trends:
  • States with strong agricultural sectors, including Montana (59%) and Wyoming (58%), report the highest prevalence of multi-structure properties.
  • Densely populated areas like California and Rhode Island show increasing numbers of ADUs due to evolving zoning laws.
  • States like Georgia (26%) and North Carolina (29%) report the lowest prevalence of secondary structures.

According to ZestyAI’s founder and CEO, Attila Toth, “Understanding the full scope of a property’s structures is critical for accurate risk management by insurers. Our findings underscore the importance of advanced analytics to help insurers ensure comprehensive coverage while managing risk effectively.”

Why This Matters

Undeclared secondary structures leave homeowners vulnerable to financial losses in the event of damage, as standard policies often provide limited coverage for detached structures. For insurers, the lack of visibility can lead to unexpected claims and elevated risks. AI-powered tools are helping address these gaps by providing real-time property assessments, eliminating the need for slower and often outdated traditional inspections. Beyond identifying secondary structures, advanced analytics also assess roof conditions and other critical factors to help insurers refine underwriting processes and reduce potential losses. As secondary structures like ADUs continue to rise, particularly in urban areas with changing zoning laws, ensuring accurate property assessments and comprehensive insurance coverage has never been more vital. For more insights from ZestyAI, visit www.zesty.ai.

LWCC, Louisiana’s largest workers’ compensation insurance carrier, announced it is acquiring 100% of North Carolina-based Prescient National, an AM Best “A” rated, high-performing national workers’ compensation insurance company, as a subsidiary of the company. ‍“Prescient National has a demonstrated track record of outstanding performance that positions it as an attractive complement to LWCC’s conservative investment strategy,” said Kristin W. Wall, LWCC’s president and CEO. “We believe the acquisition will benefit our current and future policyholders.” The acquisition brings together two top-performing workers’ compensation companies with a shared commitment to stakeholders and a culture of excellence. In addition to providing for the diversification of LWCC’s investment portfolio, LWCC expects the two companies to learn from and leverage the other’s strengths for their mutual benefit. “We are excited to enter into this long-term partnership with a company that deeply understands our business,” said Bruce Flachs, CEO of Prescient National. “The entrepreneurial, forward-looking approach our team has taken to build this company will be enhanced with LWCC’s support.” Prescient National will continue to operate as a separate business in Charlotte, North Carolina. Keefe, Bruyette & Woods, A Stifel Company, served as exclusive financial advisor and Sidley Austin LLP served as legal counsel to LWCC on this transaction. Howden Capital Markets & Advisory served as exclusive financial advisor and Robinson Bradshaw served as legal counsel to Prescient National on this transaction. About Prescient National Prescient National is headquartered in Charlotte, North Carolina. We specialize in delivering forward-thinking workers' compensation insurance solutions to employers throughout the United States.   By anticipating legal trends, market shifts, and economic cycles, Prescient National provides tailored risk management, claims handling, and coverage programs that help employers address today’s needs while preparing for future challenges. About LWCC LWCC is a Champion of Louisiana and proud to be headquartered in the state capital, Baton Rouge. As a model private mutual workers’ comp company, we are dedicated to excellence in execution from underwriting to compassionate care of injured workers. We are proud to partner with our agents and together deliver outstanding service to our policyholders and their workers. Louisiana Loyal, a movement we launched and continue to lead to celebrate and elevate Louisiana, drives us in pursuit of our purpose to help Louisiana thrive by bettering our state one business and one worker at a time. LWCC has been consistently recognized by industry leaders and named to the Ward’s 50® group of top-performing insurance companies, supporting our promise to provide safety, security, and stability to businesses in Louisiana. For more information on LWCC, its services, and its efforts to elevate Louisiana, please visit www.lwcc.com.